Cousins Properties Inc (CUZ) has disclosed a new risk, in the Debt & Financing category.
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Cousins Properties Inc. faces significant business risks from its real estate debt investments, primarily due to prepayment risk and interest rate fluctuations. During times of declining interest rates, borrowers may choose to prepay their loans, compelling the company to reinvest in lower yielding securities and potentially diminishing returns. Additionally, the market value of these debt investments is susceptible to interest rate changes, with longer-term loans experiencing greater price volatility. Such fluctuations could adversely impact the overall value of their investments and materially affect their earnings, as these are marked to fair value.
The average CUZ stock price target is $33.29, implying 6.66% upside potential.
To learn more about Cousins Properties Inc’s risk factors, click here.
